Ingves and Flodén: Hearing on monetary policy

Date 19/08/2014

Mr Ingves described developments in the Swedish economy. In his introduction, he particularly emphasised the reasons for the low inflation. Mr Ingves pointed out that the very low interest rates will contribute to inflation rising towards the target and to the economy strengthening. At the same time, the low interest rates contribute to increasing the risks linked to high household indebtedness and developments in the housing market. Mr Ingves therefore said that it is now urgent that other policy areas take measures to manage these risks.

Mr Flodén gave his perspective on monetary policy. He discussed the reasons for the low inflation and the motives behind the repo-rate cut in July, which he had supported. There are several reasons for concern over the low inflation, according to Mr Flodén. He feels that if inflation is to rise towards the target sufficiently quickly, a low interest rate is unavoidable. Like Mr Ingves, Mr Flodén noted that the low interest rates could give risk to risks linked to household debt, and emphasised that these must be managed by other policy areas.

Follow the links to see the PowerPoint presentations to the Riksdag Committee on Finance.

 

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The Governor of the Riksbank and one of the deputy governors attend hearings on monetary policy at the Riksdag Committee on Finance three times a year.